For starters, try to calculate about how many years you will spend in retirement. Next, determine about how much annual income you will need to cover the retirement lifestyle you’ve envisioned. Take into account such factors as your travel plans, your housing costs, health-care expenses and other related factors.
Once you’ve estimated your retirement income needs, you can develop an income strategy based on your savings, investments, projected Social Security payments and retirement plan distributions.
Start “doing the math” on your long-term financial goals very soon - and see how well the numbers add up for you.
To Build Wealth, Look at Both Sides of the Balance Sheet
To achieve your financial goals, you need to save and invest. But you also need to defend as well as to protect your hard earned savings and investments from being eroded by debts.
To accomplish this goal, look at ways of cutting your expenses as much as possible. Can you make your old car last another year? Can you find ways to cut down on your cable and phone services?
While you’re cutting your costs, you can still add to your investments. Try increasing your contributions to your 401(k) or other employer-sponsored retirement plan every time you get a raise. Also, “pay yourself first.” Each month, before you pay the mortgage, the utility companies and your other obligations, set aside an amount for your savings and investments.
By taking these steps, you can help get a firmer grip on your financial situation - today and tomorrow.
Contact Wendell at Edward Jones www.edwardjones.com.
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